Categories: Featured

Top 3 Recent Darknet Market Exit Scams

Darknet marketplaces have embraced cryptocurrency quite some time ago. Most platforms now accept Bitcoin, although some service providers have explored Monero and Ethereum options as well. Unfortunately, there is one big threat looming over darknet markets. Some of these platforms will disappear overnight in what is known as an “exit scam.” We have collected three recent incidents to illustrate this point.

3. East India Company

Although the name would not suggest it, East India Company was a notorious darknet market which disappeared in early 2016. The platform had seen its fair share of problems in the past, though, as they were hacked in August of 2015 and lost 30 Bitcoins. However, the company successfully regained some of its popularity afterward, and a lot of users slowly made their way back to the platform.

Things started to get out of hand in January of 2014 when the platform became inaccessible for several days. With no response from the administrators, there was a valid reason to start panicking. It did not take long until user’s Bitcoin wallets started getting drained, although no one knows exactly how much funds have been stolen. It is one of the biggest darknet market exit scams over the past few years.

2. Oasis

One of the first darknet markets to experiment with Monero payments went by the name of Oasis. Past tense is more than warranted here, as the platform suddenly went dark in late 2016. It appears a lot of users were effectively scammed before the company disappeared, which resulted in at least 150 Bitcoin in losses. The amount of stolen XMR was never officially confirmed, but it is believed it was quite substantial.

Related Post

Things had been looking quite positive for Oasis, as many people felt the platform was legitimate. Moreover, its user base continued to grow exponentially, and Oasis could have turned into one of the primary darknet marketplaces we know today. Unfortunately, the administrators took the easy way out and stole money in the process. It serves as a stark warning for anyone using darknet markets, that much is evident.

1. Evolution

Virtually everyone will remember the Evolution marketplace exit scam, as it made quite a few mainstream media headlines. During the heist, it is believed over 40,000 Bitcoin were stolen in 2015. At that time, these coins were worth about US$12m, however no one is certain if they were actually sold across exchanges. If the thieves still have a portion of this money in possession, they will make bank quite easily.

At the time of this notorious exit scam, Evolution was one of the biggest darknet markets around the world. Although it is not the biggest darknet market exit scam in history, it is the biggest since March of 2015. All funds kept in escrow was stolen by either the administrators or someone who successfully hacked the platform. None of the funds were ever retrieved, unfortunately.

If you liked this article, follow us on Twitter @themerklenews and make sure to subscribe to our newsletter to receive the latest bitcoin, cryptocurrency, and technology news.

JP Buntinx

JP Buntinx is a FinTech and Bitcoin enthusiast living in Belgium. His passion for finance and technology made him one of the world's leading freelance Bitcoin writers, and he aims to achieve the same level of respect in the FinTech sector.

Share
Published by
JP Buntinx

Recent Posts

Ethereum Down While Bitcoin, Solana, and JetBolt Skyrocket In End November 2024

Ethereum stumbles as Bitcoin surges past $97K, Solana eyes new highs, and JetBolt’s presale shakes…

2 hours ago

Top 5 Best Crypto Presales to Grab Now: Don’t Miss These December Week 1 Gems

The crypto market is a buzz with promising presales as 2024 draws the curtains. With…

3 hours ago

Cheems Surge On BSC Network: A Rising Star With Growing Market Value

The Cheems token on the Binance Smart Chain (BSC) is gaining significant momentum, surging by…

11 hours ago

Lester Token Crashes 40% Following Official Announcement

The value of $LESTER plummeted by 40% in the past 24 hours, leaving its market…

11 hours ago

From $30K To Millions: The Wild Journey Of $Quant And Xiaohaige’s Memecoin Stunts

In a bizarre turn of events, a young live-streamer known as Xiaohaige created the memecoin…

11 hours ago

Whale “convexcuck.eth” Makes Bold $CVX Move, Nets Significant Profit Amid Price Surge

The crypto whale known as "convexcuck.eth" has made waves in the DeFi world, spending $2…

11 hours ago